Wednesday, September 26, 2007

Rhodia S.Korea plant leads world in carbon credits

Reuters has been on a roll recently in their coverage of the business of climate.

A South Korean chemical plant that cleaned up its act has received the most United Nations carbon credits to date and its French owner Rhodia is raking in profit as a result.

The adipic acid plant in Onsan, South Korea has received nearly 10 million carbon credits, or certified emissions reductions (CERs), from the U.N. under the Kyoto Protocol for reductions made in the past year. All of these have been resold by chemical company Rhodia at a hefty markup.

According a United Nations Website (http://cdm.unfccc.int), the Onsan plant's closest rival project, a hydrofluorocarbon (HFC) plant in India, has received just 8.7 million CERs to date for reductions between 2004 and 2007.

CERs, each equal to the reduction of one tonne of carbon dioxide equivalent (CO2e), are issued by the United Nations Framework Convention for Climate Change (UNFCCC) and are traded worldwide.

"I can confirm that we've sold all CERs expected to be received in the second half of 2007 for an average price of 14.40 euros," Rita Hillig, Head of Media Relations for Rhodia, said.

She added that the credits received in the first half were sold for slightly more, at 14.50 euros.

"I can also confirm that we've sold forward five million 2008 CERs at an average price of 15 euros."

Philippe Rosier, President of Rhodia Energy Services, told Reuters in October 2006 these credits cost just 60 euro cents each....MORE